Question

1. ___ gross domestic product (gdp) is also known as economic ___,

a. input
b. growth
c. output
d. policy

1. _____ which type of spending is not a component of gross domestic product (gdp)?

a. consumer
b. business
c. government
d. stock market

1. ___ a general rise in prices throughout an economy is called ___.

a. inflation
b. deflation
c. per capita gdp
d. fiscal policy

copyright goodheart-wilcox co., inc.
may not be reproduced or posted to a publicly accessible website

Explanation:

Question 1

GDP measures the total value of goods and services produced (output) in an economy. Input is what's used to produce, growth is a rate, policy is a government action. So GDP is economic output.

GDP components are consumption (consumer), investment (business), government spending, and net exports. Stock market spending is on financial assets, not goods/services, so not a GDP component.

Inflation is the general price rise. Deflation is price drop, per capita GDP is GDP per person, fiscal policy is government spending/tax policy. So the answer is inflation.

Answer:

C. output

Question 2